The Bond King Declares No More Faith in Bonds

Two more renowned investment professionals have recently joined the ranks of those who’ve abandoned stocks and bonds for gold. The first of these, billionaire Bill Gross has publicly declared he has no more faith in bonds – quite an assertion coming from a man who developed a reputation over many years as “the bond king.”

In 1971, Gross co-founded Pacific Management Investment Company (PIMCO), located in Newport Beach, California. In 2014, he left the firm to join Janus Capital Group.

In quite a number of recent interviews, Gross has publicly counseled investors to stay away from bonds, and to invest in gold instead. He’s remarked too that yields on government bonds have been hammered so low by central banks, that these institutions have nothing left in their bag of tricks than the ability to print money.

Returns from bonds, then, are now insufficient for them to remain a conservative investment alternative to bustling, yet shaky, stock and commodity markets. Also, Gross doesn’t like most stocks at the present time. On August 3, he made this remark to CNBC:

“If we see fiscal stimulation in Japan China and ultimately the U.S. after the election, I think we should be investing in real assets as opposed to financial assets ….”

And by “real assets,” Gross means gold. He sees gold as a hard asset in a limited supply, as opposed to “financial assets,” which are artificially created by central banks.

Wall Street trader Richard Bernstein is another professional who’s developed an affinity for gold. In his 35 years on Wall Street, he’s been a declared gold hater. But now he insists one should “…Buy real assets when inflation expectations start to go up.” And he points out too that recent statements from the Federal Reserve suggest it may be willing to tolerate more inflation.

Bernstein also feels gold is now performing like a portfolio diversifier. When gold rose earlier in the decade, it tended to move up when stocks moved up. But now gold tends to rise in price when the price of stocks decline.

Gold, then, continues to win over professional investors formerly devoted to paper assets. Isn’t it time, then, that you look at your own retirement portfolio, and consider an investment in physical gold as a diversifier?

For more information, call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.